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The Islamic Development Bank (IDB) is using blockchain to develop new sharia-complaint financial products. The bank's Islamic Research and Training Institute has struck an agreement with two startups, Ateon and SettleMint, to perform technical feasibility studies. IDB said that it was interested in asset exchanges that can settle in near-instant time. According to the statement by SettleMint, blockchain smart contracts can help automate the contractual processes for Islamic institutions. At the same time, they can also alleviate the additional administrative and legal complexities as well as redundancies associated with Sharia-compliant financial products. SettleMint's CEO Matthew Van Niekerk said he was excited to contribute to this project, thus to the financial inclusion and development of the 57 member countries of the IDB.

The Islamic Development Bank (IDB) plans to use blockchain technology to develop sharia-compliant products to support financial inclusion in its member countries. The bank's Islamic Research and Training Institute signed an agreement with local firm Ateon and Belgium-based SettleMint for the development of the project. Blockchain involves a shared electronic ledger that allows all parties to track information, removing the need for third-party verification. The IDB said such features would allow for instantaneous clearing and settlement of transactions and asset exchanges, while helping eliminate counterparty risk.

The Islamic Research and Training Institute (IRTI) signed an agreement with Ateon to build a Blockchain-based financial product to support financial inclusion in IDB member countries. Saudi Arabian Ateon will be working on this project with SettleMint, which is a Belgium-based software company. Blockchain smart contracts enable the automation of the entire contractual process for Islamic institutions, alleviating the additional administrative and legal complexities associated with Sharia compliant financial products. Not only that, smart contracts are easy to verify, immutable and secure. The International Fiqh Academy has approved contracting through electronic means since 1990.

ShoCard, Ateon and Bank AlJazira are working in partnership to launch the first-of-its-kind use case in the region. The use case uses ShoCard's blockchain-based identity management solution along with the KYC solution from SettleMint. ShoCard's technology can be used for password-less login, whereby user credentials are not stored on any computer. ShoCard also ensures no personal or financial data is exchanged during transactions, thus resulting in fast, trusted authentications. Expected benefits of the system include reduced cost for identity management, reduced fraud and improved customer satisfaction. ShoCard's use case samples are easy to develop and can quickly integrate into clients' infrastructure. ShoCard has a ready-to-go complete stack with patented technology.